Share Market Update: Record Highs and Investor Wealth Surge
On the final trading day of the month, the Indian stock market witnessed a remarkable surge, buoyed by positive investor sentiment and robust economic data ahead of the first-quarter announcements. Both benchmark indices, the BSE Sensex and NSE Nifty, opened at new record highs, with the market showcasing a vibrant atmosphere. The Sensex surged by around 320 points, while the Nifty jumped approximately 95 points right at the start of the trading session.
Market Performance Overview
As the trading day unfolded, by 9:40 AM, the Sensex was trading up by around 250 points, crossing the 82,381 mark, while the Nifty 50 index had climbed over 75 points, reaching beyond 25,226. The significant upward movement resulted in an impressive increase of ₹1.75 lakh crore in investor wealth as the market opened.
Notable Stocks and Sector Performance
During the early hours of trading, most major stocks in the Sensex were in positive territory. Bajaj Finserv led the gains with a rise of 1.5%. Other notable performers included Titan, HDFC Bank, and Bajaj Finance, each rising by more than 1%. Out of 30 shares in the Sensex, only 6 were in the red. However, major IT stocks like TCS, Infosys, HCL Tech, and Tech Mahindra faced slight declines.
Surge in Investor Wealth
Excluding the IT sector, all other sectors in the Nifty showed positive performance. There was also a noticeable uptick in mid-cap and small-cap stocks. Overall, the market capitalization of companies listed on the BSE increased by ₹1.75 lakh crore. On the previous trading day, August 29, 2024, the total market cap was ₹4,62,56,079.12 crore, and by today, August 30, 2024, it escalated to ₹4,64,31,348.69 crore, reflecting a remarkable wealth increase for investors of ₹1,75,269.57 crore.
Recent Highs and Previous Records
The Indian stock market had recently set new highs. On Thursday, the Sensex closed up by 349.05 points at 82,134.61 and reached an intraday high of 82,285.83 points, marking a new all-time high. Similarly, the Nifty closed at 25,151.95 points, gaining 99.60 points, with an intraday peak of 25,192.90 points also being recorded.
Global Market Influence
Following the release of GDP data in the United States, global market sentiment appears to have improved. On Thursday, the Dow Jones Industrial Average noted a gain of 0.59%. Meanwhile, the S&P 500 remained relatively stable, and the NASDAQ Composite Index experienced a slight decline of 0.23%. Asian markets have shown strength today, with Japan’s Nikkei experiencing modest gains and the Topix index rising by 0.23%. However, South Korea’s Kospi increased by 0.55% and the KOSDAQ by 0.74%. In contrast, Hong Kong’s Hang Seng Index began on a weak note.
Impact of GDP Data Release
Today marks the release of India’s official economic data for the first quarter (April-June 2024). Ahead of this, global credit rating agency Moody’s has upgraded its growth forecast for India’s economy, projecting growth rates of 7.2% for 2024 and 6.6% for 2025. This optimistic outlook adds to the positive sentiment in the markets and reflects confidence in the Indian economic recovery.
Conclusion
The stock market’s buoyancy reflects healthy investor sentiment amidst favorable economic forecasts. As stakeholders eagerly await economic data releases, the current trend has set the stage for potential further gains in the coming weeks.
